Employment Cases Update

8th edition of the Ogden Tables released

Date published: 20/07/2020

The Government Actuary Department (GAD) have published the 8th edition of the Ogden tables. This is the first amendment since the 7th edition was published in 2011.

 

The main changes for employment pension loss purposes are as follows:

  • The 8th edition provides multipliers based on mortality rates from the most recent, 2018-based, projections (published at the end of 2019).
  • Four new tables are provided for men and women for loss of earnings to a retirement age of 68 and pension losses from the same age.
  • Four new tables are provided for men and women for loss of earnings to a retirement age of 80 and pension losses from the same age.
  • There are new Additional Tables at discount rates of -0.25%, -0.75% and 0% for men and women which allow for the calculation of multipliers from any age at trial to any future age (up to age 125). The key advantage of the Additional Tables is that they allow for accurate interpolation and calculation of split multipliers, especially for retirement ages that are not contained within the main Ogden Tables.

The Employment Tribunal Remedies Handbook 2020/21 has just gone to press (23 July 2020) and includes the new Ogden tables. We have it on good authority that the new Ogden tables will be used from now on when tribunals need to calculate pension loss (rather than from 2022 which has been mentioned on page 62 of the document).

The full document can be found here.

The 36 Ogden tables can be found here.

The Additional table can be found here.